The Times of Israel reports:

High-earning Israelis working in tech and healthcare are emigrating in sharply rising numbers, almost doubling over five years, a new study by the Israel Tax Authority has found.

The research by the Israel Tax Authority’s Planning and Economics Division, which examined incomes of Israeli emigrants over the past decade, found the rate at which affluent Israelis left the country increased sharply in 2023 and 2024 to record highs, and was almost double what it was until 2019.

The Israel Tax Authority analysis said that the brain drain disproportionately involves doctors, engineers and other highly educated, high-earning workers, who are in the primes of their careers.

“From all the indicators regarding Israelis recently leaving the country a consistent picture emerges: the pace of emigration among the strong and affluent strata of society increased, whereas among the weaker strata, the departure rate is almost unchanged,” said Dr. Ariel Greizaz and Nili Ben-Tovim, the authors of the study.

“An analysis of the emigrants’ incomes relative to the average income in the population reveals that previously, the emigrants’ income before leaving was similar to the average income in the economy, whereas today their income is about 50% higher – further evidence that in recent years, an affluent population has been emigrating from Israel.”

The authors of the study stated that it was difficult to determine whether this shift in the makeup of emigrants stemmed from major changes that occurred in society and the labor market following the COVID-19 pandemic, or whether it was a reaction to the political upheaval over the judicial overhaul and security events that started with the October 7 onslaught and war in Gaza that have been shaking Israel since 2023.

They warned that the sharply rising emigration of high-earning Israelis could cause tax revenue losses to the tune of an annual $3.5 billion. [Continue reading…]